Stifel Nicolaus reiterated its Buy rating on Avnet (NYSE: AVT) and raised the price target from $35.00 to $40.00.

Stifel Nicolaus commented, "Positive bookings trends in the components business is an encouraging sign that the component cycle has at least bottomed, if not turned, and that a modest inventory-refresh period may be in the offing. The surprisingly strong sequential growth in Tech Solutions (up roughly 27% on a pro forma basis) is a clear sign that enterprise deals pushed out from the Sept. quarter got done in calendar Q4 and pipeline quarter-to-date indicates a return to seasonal patterns, another positive. Management said it still aims to achieve 3.7% EBIT margins in the June quarter, which would imply an annual EPS run-rate of well north of $4.00."